Developer Foundry Commercial is planning an industrial development in a well located Miami suburb, a market with strong demand and a vacancy rate below the national average.
The Midpointe Miami Logistics Park off Northwest 107th Avenue between 144th and 146th streets in Hialeah Gardens, Florida, will be built on speculation, meaning without tenants in place, according to Avison Young. It brokered a $13.1 million, off-market land deal for Foundry, which assembled parcels from sellers 14500 Holdings and Halperin & Melvin Deutsch Trust.
Foundry could build a 320,000-square-foot facility for a single user or a two-building business park, the brokerage said. Groundbreaking is expected early next year, and the project is due to be completed by the end of 2020.
“The rise of e-commerce along with the steady industrial user demand continues to draw the attention of institutional capital,” Avison Young’s Bobby Benton said in a statement. “However, finding investment and development opportunities in a tight and land-constrained market proves difficult.”
Much of South Florida is wedged between the Atlantic Ocean and the Everglades, leading to a severe land shortage across the region.
Midpointe is in the Medley industrial submarket, which is near Miami International Airport and Port Miami and is accessible from major highways. Demand has outstripped supply in Medley, leading to low vacancies that are forecast to hover around 4% in the next year, according to the latest submarket report from CoStar Market Analytics. The national average is 5.1%.
Medley accounts for 15% of Miami-Dade County’s 245 million square feet of industrial inventory, It’s the area’s third-largest industrial submarket behind Miami Airport West and North Miami Beach.
“Medley's more affordable pricing has attracted tenants that want to be located strategically close to Miami International Airport and PortMiami but don't want to pay the premium that Miami Airport West carries,” the CoStar report stated.
Orlando, Florida-based Foundry has said its South Florida industrial portfolio tops 9 million square feet and is valued at more than $1 billion. Its other projects in the region include Cypress Point Distribution Center in Pompano Beach, the Carrie Meek International Business Park in Opa Locka, home to an Amazon fulfillment center, and Miami Central Commons in Doral.
Bridge Development Partners also is planning a speculative industrial project in Miami-Dade County, a 1 million-square-foot facility at AVE Aviation & Commerce Center, 14350 NW 56th Court in Hialeah.
For the Record
Avison Young's Benton, Wayne Schuchts and David Spillers will lease the new development for Foundry. The sellers did not have broker representation in the land sales.
